Recently the multi-kind, small-amount manufacturing system has been replacing the mass manufacturing system, and domestic machining inustry also is eager to absorb the new technology because of its high productivity and cost reduction. The optimization of the cutting condition has been a vital problem in the machining industry, which would help increase the productivity and raise the international competitiveness. It is intended in this study to investigate the machining costs per unit time which is essential to the analysis of the optimal cutting condition, to computer the cutting speed that lead to the minimum machining costs and the maximum production to suggest the cutting speed range that enables efficient speed cutting, and to review the machining economy in relation to cutting depth and feed. Also considered are the optimal cutting speed and prodution rated in rrelation with feed. It is found that the minimum-cost cutting speed increases and the efficient cutting speed range is reduced as machining cost per unit time increases since the cutting speed for maximum production remains almost constant. The machining cost is also lowered and the production rate increases as the feed increases, and the feed should be selected to satisfy the required surface roughness. The machining cost and production rate are hardly affected by the cutting depth if the cutting speed stays below 100m/min, however, they are subject to change at larger cutting depth and the high-efficient speed range also is restricted. It can be established an adaptive optimal cutting conditions can be established in workshop by the auto-selection progam for optimal operation. It is expected that this method for choosing the optimal cutting conditions might contribute to the improvement of the productivity and reduced the cost. It is highly recommended to prepare the optimal cutting conditionthus obtained for future use in the programing of G-function of CNC machines. If proper programs that automatically select the optimal cutting conditions should be developed, it would be helpful to the works being done in the machine shops and would result in noticeable production raise and cost reduction.